--- title: "Cannindah Resources Kicks off Expansion Drilling Targeting GAP Zone and Southern Porphyry" type: "News" locale: "en" url: "https://longbridge.com/en/news/275381549.md" description: "Cannindah Resources has initiated a resource expansion drilling campaign at the Mt Cannindah copper-gold project, focusing on the high-grade GAP zone. Initial results show significant intersections, including 278m @ 1.16% CuEq. The company plans to drill the Southern Porphyry target soon, with previous results indicating potential for further discovery. To support these efforts, Cannindah recently completed a $15 million placement and aims for an additional $2 million from a Share Purchase Plan. The current Mineral Resource Estimate stands at 14.5 Mt @ 1.09% CuEq, with ongoing exploration expected to enhance the resource base." datetime: "2026-02-10T00:25:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275381549.md) - [en](https://longbridge.com/en/news/275381549.md) - [zh-HK](https://longbridge.com/zh-HK/news/275381549.md) generator: "portal-rs" --- # Cannindah Resources Kicks off Expansion Drilling Targeting GAP Zone and Southern Porphyry Cannindah Resources has commenced its resource expansion drilling campaign at the Mt Cannindah copper-gold project, targeting the high-grade GAP zone with early results showing significant intersections. The company is also preparing to drill the Southern Porphyry Cu-Au target, aiming to bolster its existing **14.5 Mt @ 1.09% CuEq** Mineral Resource Estimate. **GAP Zone Expansion Drilling** Cannindah Resources has commenced drilling to expand the Cannindah Breccia Mineral Resource Estimate (MRE), specifically targeting the high-grade GAP zone. Initial results from this zone show strong intersections, including **278m @ 1.16% CuEq from 0m** at the northern end (**22CAE0083**). The southern end also returned **120m @ 1.16% CuEq from 30m**, which included **60m @ 1.94% CuEq from 48m** (**25CRC0024**). The GAP zone is defined as a **275m** long section within a **600m** strike length, where previous data was limited. The current program, consisting of **12 holes** totalling approximately **3000m**, aims to improve the project's resource size and average grade. An updated MRE is planned upon completion of this initial drilling program. **Southern Porphyry Target Drilling** Further exploration is on the horizon, with a second rig scheduled to commence drilling at the Southern Porphyry Cu-Au Target within approximately **four weeks**. A previous intersection at the Southern Target returned **28m @ 1.15% CuEq**, notably ending in mineralisation (**25CRC0165**), indicating potential for further discovery. Previous quarterly reports indicated the Southern Target footprint exceeds **2000m by 800m** and remains open, suggesting a substantial area for exploration. **Funding and Capital Context** To support these aggressive exploration efforts, Cannindah Resources recently completed a **$15 million** two-tranche placement to institutional and sophisticated investors. The company is also targeting up to an additional **$2 million** from a Share Purchase Plan (SPP), aiming for approximately **$16 million** in cash post-settlement (before costs). These funds are earmarked for accelerating exploration at Mt Cannindah, specifically for RC and diamond drilling, as well as general working capital. This follows previous capital raising activities, including a **$5 million** placement announced in **October 2024** and a fully underwritten **$4.5 million** rights issue announced in **August 2025**, as detailed in the FY2025 annual report. The company’s ability to secure timely funding is critical to its exploration continuity. **Resource Base and Project Scale** The Mt Cannindah project currently boasts an existing MRE, updated on **3 July 2024**, standing at **14.5 Mt @ 1.09% CuEq**. This significant resource contains **105,000 t** of copper, **197,000 oz** of gold, and **6.4 Moz** of silver. The MRE is defined to an open-pit depth of **350m**, with mineralisation noted downhole to **1086m**, indicating substantial depth potential. **Exploration Strategy and Outlook** Cannindah Resources’ current drilling strategy is designed to expand the existing resource base and potentially improve the average grade of the Mt Cannindah project. This could lead to a near-term re-rating for the company, though this is contingent on factors such as metallurgy, capital expenditure, and ultimate feasibility outcomes. The company’s FY2025 annual report highlighted an ongoing exploration focus at Mt Cannindah, with updated geological modelling continuing after the **3 July 2024** MRE upgrade. The report also underscored the critical role of capital raising activities in funding these drilling and exploration programs. ### Related Stocks - [CNB.AU](https://longbridge.com/en/quote/CNB.AU.md) - [CAN.AU](https://longbridge.com/en/quote/CAN.AU.md) ## Related News & Research - [CNB: Greater Duchess Project advanced, FY26 net loss $9.53M, Evolution Mining acquisition at 60% premium](https://longbridge.com/en/news/297884202.md) - [ASX Waiver Clears Path for Carnaby Options Cancellation in Evolution Takeover](https://longbridge.com/en/news/297448761.md) - [CNB: Evolution Mining acquisition delivers premium and liquidity, with strong copper-gold exploration results](https://longbridge.com/en/news/294275004.md) - [Evolution Mining to buy Carnaby Resources in $149M deal](https://longbridge.com/en/news/293956526.md) - [MA Financial Group Remains a Buy on Carnaby Resources Ltd. (CNB)](https://longbridge.com/en/news/294081840.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**